The Pascagoula democrat-star. (Pascagoula, Miss.) 1878-1920, 1887-11-11
PROF. MAYEs REPLIES TO GEN.
GEORGE.

EuWaIu May eS, OF OXFORD, MISS.
o TO the paper furnished the Farmeri
+, Alliance by Senator j. u. GGorg,
: on the States Indebtedness to the
Mississippi University. The paper
is more volumin0uS than that oil
Senator George, occupying sixteen
, and one.half OF the long columns OF
the CLARION, or nearly two entire
pages.
The reader will more fully under
stand the cauSuS beL6 of this discus
sion by referring To the acts of the
Legislature OF 1880, 1872, 1913 aud
1914, OF can act to provide for the
Indebtedness of the State on ac-
count of the Seminary Fund and for
the payment of interest thereon.'
That act WAS based upon the report
OF a JOINT committee on universities,
ana acknowledged an indebtedness
to the State University on accountof
the loss of the Seminary Fund by
the failure of the Planters Bank
and otherwise, of $544,O 61, 90 and
provided for the payment of six per
cent. interest Tor So, 643, 66) there
on, annually in quarterly Install
mentS.
As stated in our comments Oh the
paper OF Senator George, this alleg.
Ell Indebtedness grew out of the
loss of funds realized from rents
and sales of certain lands douated
by Congress to The State for the use
OF a Seminary of Learning. These
lands we're located and taken in
charge by the State, at first rented
and then sold for part cash and part
Neither the rent or purchase
money was ever entirely collected.
Such amounts as were collected
were invested in the stock of the
Planters Bank and other corpora.
tions and lost.
Senator George contends, as we !
understand il, that the dUuation
was made to the State Ito be used {
tor educational purposes and that
he State was only bound to exer. a
Use reasonable prudence in the {
management OF the fund to be ex-
'nerated in case of its loss. This a
iuty he claims that the State fully 5
discharged, and that therefore she IL
$ not legally or morally liable for 81
be lost fund, or any part of it, not ii
outstanding the act of 1880. PIof. ii
layes replies that this view is not st
Direct as an Interpretation OF the p;
Nv, nor as to the facts upon which p:
is p~redlcated. He claims that pI
State, III accepting the dona-
Tor the use Of a Seminary OF co
became, as to that dona. AS
1n, a trustee OF the Seminary OF J"
chosen or set apart by
q State as the beneficiary, which
the State University at Oxford.
thlS Interpretation he applies
Q legal rule that when a trustee m
or invests u trust fund or mixes as
with his own he becomes liable pre-
'relore, with compound interest. ou'
der this rule be claims that the fro
'te Is liable for the funds collect tea
and invested iu the Planters sch
nix stock. This is the legal view ant
espectiVe of the matter of pru. TIss'
ice, but he also contends that the tea
tets morally liable on the ground amr
t the investment was aU iniudi- par
Que for eason too numerous l
special mention here. Ian,
5 to funds not collected, con-
ing Ofrents and purchase money, '
latteISdue u installments, lie mo
luces documentary evidence 10 y !
W that the State was derelict in wi
duty in not taking the necessary ,'
IS for realizing on notes aud Sc pun
ties given for such dues. Here "o"
sites the legal rule laid down by S'"
on trustees to show that the "ou
9 was trustee of such chooses "
ction and became liable for fail
to take action by suit or other SIP
}, which resulted in loss. COu
he Professor concludes with ia the
OF mathematical calculations of Ien.
amount due. The one which 49,
Dis to be the nearest IN accord lie |
the view OF the liability as iana
re shown, brings the State in acco
to the University over 5000. eueI
'o u'ooA 10 snow payI
t was probably the basis Of the rect
illusions OF the committee of the the
stature of 1880 aud came with. Unit
Dout AZ % n, -. amOI
!, -. Ou' u bly, a
'eou'' do mat OF COL Brough- in th
Of that committee, by the most feet
al concessions. us W